NEWS | When people buy a company's stock, they are buying a tiny piece of that company, hoping it grows and becomes worth more later. Right now, a lot of people are buying stock in companies tied to artificial intelligence, hoping those companies grow fast because AI is such a big trend. Nvidia has gotten a lot of that attention. Amazon has not, even though one stock market expert named Mark Mahaney thinks that is a mistake.
Here is why. Amazon owns a huge cloud computing business called AWS. Cloud computing just means renting out powerful computers over the internet instead of a company buying and running its own. A lot of companies building AI tools do not own the computers needed to run them, so they rent that power from AWS instead. Amazon never built its own famous AI chatbot like ChatGPT. Instead, it is more like the landlord renting out space to the companies that did build those chatbots. AWS alone now brings in about 169 billion dollars a year. Amazon also uses AI inside its own stores, helping pack boxes faster, deliver with self driving vehicles, and choose better ads for shoppers.
Mahaney thinks Amazon's stock should be worth much more than it currently is, around 355 dollars instead of about 250, because people are focused on the exciting AI products and forgetting about the company quietly providing the computer power behind a lot of them.
BMN thinks this makes sense. People usually get excited about the flashy stuff they can see and use, like a chatbot, while ignoring the boring but necessary stuff working behind the scenes. Without companies like Amazon renting out that computer power, a lot of AI tools could not even run in the first place.
This is still just one expert's opinion, not a guaranteed fact. Many people still think Nvidia is the safer bet, since it makes the actual computer chips AI needs to run. Amazon is also spending a massive amount of money building all this out, and that spending eventually needs to turn into real profit, not just bigger numbers that look good on paper.
If Amazon really is quietly powering so much of the AI boom without anyone noticing, how much longer will people keep ignoring it while chasing more exciting AI companies instead?
